Not good news at a time when everyone’s concerned about the viability of the European bailout mechanisms.
According to Dow Jones (via ForexLive) Austria has decided to withhold its contribution to the Greek bailout, citing failure to make progress on finances.
This is obviously a pretty big problem, since that will spur others to wonder why they’re still contributing to the bailout fund.
Ad hoc bailouts probably won’t work. Permanent available capital is the only mechanism that will soothe bond buyers and other market players.